Quick question on the “Paris club refund”

First a bit of background. Nigeria incurred a lot of debt in the 80’s mostly from the Paris club, a group of international lenders. The federal government took these loans and spent it alone. A proverbial chopping and cleaning mouth. The loans of course needed to be serviced and paid back. Now, since about 1995,… Continue reading Quick question on the “Paris club refund”

Creative destruction: In business, death is a part of life

If we are trying to build an economy that works, that can create jobs, and that can drive Nigeria into the future, we will have to let some old ideas, and some old businesses die In the guardian today online and in print. https://guardian.ng/features/creative-destruction-in-business-death-is-a-part-of-life/

Naira struggles: And another one….

This is really becoming tiring but we must. The central bank announced yet another intervention program disguised as a policy yesterday. The policy may be in response to marching orders received by the central bank governor during the last FEC meeting to reduce the spread between the interbank and black market. The spread has risen… Continue reading Naira struggles: And another one….

Woo hoo Eurobonds

  Finally some good news. The $1bn Eurobond sale was successful. It was almost 8 times oversubscribed with orders up to $7.8bn (we will still take only a $1bn). At 7.875% it is a lot lower than the 8.5% that was the initial target, although still a bit high. Especially considering returns elsewhere. You literally… Continue reading Woo hoo Eurobonds

Naira struggles: The missing 42nd item

  So just to recap, we have the raw materials, the skills, and the market, and if we stopped importing fuel our foreign exchange crisis might be over. If the central bank really believed that banning products from the official markets really led to local production of that product, then why isn’t fuel on the… Continue reading Naira struggles: The missing 42nd item